What Does Bitcoin Rely on for Volatility (How Does Bitcoin Appreciate)

What Does Bitcoin Rely on for Volatility According to LongHash, based on CryptoCompare’s data, the price of Bitcoin quickly rose from its March low to a recent high of around $42,000. And this time, it is due to “halving”.

In the last week of December 2017, after a surge of more than 20%, the price of Bitcoin fell back below $57,000. Then, on the first Tuesday of 2019 (third quarter of 2020), the price plummeted by over 50%, but still reached a new high and reached $65,000 at the end of November. It is still unclear whether the price fluctuation of this cryptocurrency is influenced by other factors. However, several key indicators indicate that the main volatility of Bitcoin comes from its underlying technology – hash rate and on-chain activity. Over time, these data suggest that Bitcoin is becoming a store of value in global portfolios. What does Bitcoin rely on for volatility? Bitcoin maintains its price stability through various means: traders buy or sell in the OTC market and then enter the market for arbitrage; hedge funds, short-selling institutional investors, and large holders all use leverage trading for profit. “Futures exchanges” are platforms used to track the performance of digital asset markets, which can track the market performance of digital assets and interact with major exchanges.”

How Does Bitcoin Appreciate

Since the invention of Bitcoin, it has been seen as a store of value. However, the world’s understanding of cryptocurrencies and blockchain technology is still in its infancy: although these technologies have been developing and growing for decades, how do they maintain, grow, and develop their value?

According to data from CoinMarketCap, the current market value of Bitcoin is $246.7 billion (calculated in US dollars). And if we compare it to gold, then Bitcoin becomes a global commodity that can be used as a settlement unit. However, this new study suggests that despite the high volatility of Bitcoin compared to other assets, due to its scarcity, it is still possible to be influenced by other factors. Thus, this reasoning arises that Bitcoin is not a digital token or digital form of fiat currency issued or controlled by any single entity. Instead, it is built on specific applications or networks. By using blockchain systems to achieve this goal, Bitcoin is a decentralized network structure. (CryptoPotato)